Termination of leave and license agreement

Q: Hello,

I have rented a 1 bedroom flat in Mumbai and signed 11 month leave and license agreement. There is no lock-in period and the agreement clearly states that, both parties can terminate the agreement by giving 1 month advanced notice. Does this mean I can terminate my agreement in 5 months by giving notice in 4th month. Appreciate your response. Thanks....Ritesh

Ritesh Shah, Mumbai

11th July 2012

Rentals in Mumbai

increase in rental rate

rentals in mumbai

maharashtra government

maharashtra housing and area development authority

bombay rent control act

landlord

leave and licence agreement

maharashtra rent control act 1999

amendment in rent control act 1999

rent control act 1999

the rentals

new rental rates in maharashtra

Follow Discussion

Also see discussions for

Mumbai Rentals Rentals in Mumbai

Replies (6)

Hi All,
This kind of agreement is specific to the city of Mumbai where owner prefer to use this agreement rather than a standard Tenancy or Lease Agreement in order to save on the Stamp Duty and registration charges. A Leave & License agreement is usually for a period of 36 months.

Joydeep D,

10th July 2015

Comment

Right Joydeep,
Under Section 55 of the Maharashtra Rent Control Act, 1999, it is compulsory that all Leave and Licence agreements should be in writing and registered. The penalty for failure to register is imprisonment up to 3 months, or a fine up to Rs. 5000 or both.

Dharmaja Patel, Mumbai

10th July 2015

Hey Pradyuman,
It is also mentioned in the amended Maharashtra Rent Control Act 1999 that from the 4th year onwards, the landlord can levy 100% of rent, though the act has introduced one more warning that the landlord cannot levy a market rent that is more than 30% of the annual income of the tenant. In such cases the tenant will be liable to pay rent equal to only 30% of his/her annual income.

Kunal,

22nd May 2015

Comment

Right Kunal,
It seems to me that the Maharashtra Government is trying to create more housing stock and development by moving the amendment. Under the current Maharashtra Rent Control Act, rents cannot be charged at market rates for buildings constructed before 1969 (cessed property). In such buildings only a standard rent could be imposed.

pradyumanapte, Mumbai

22nd May 2015

For a long time landlords have been complaining that the standard rent is quite low and does not give them much a little amount as rents. For example, in posh Marine Drive where buying a property would cost you few crores, landlords of pre-1969 buildings just getting of Rs 200/ month from a tenant.

Kunal,

22nd May 2015

Hi all,
To get more details on amanded Maharashtra Rent Control Act 1999 click the link The Maharashtra Rent Control Act 1999

Kaushik Bardia,

23rd May 2015

Hey all,
Have you heard the latest news on amendment in Maharashtra Rent Control Act 1999. This Act does not apply to any premises belonging to the Government or a local authority, any premises let or sub-let to banks, or any Public Sector Undertakings or any Corporation established by or under any Central or State Act

pradyumanapte, Mumbai

22nd May 2015

Comment

Thanks for the information Pradyuman,
Is there any amendment for the Landlord’s point of view? I have given my flat on rent in Andheri East? So, i need some updates on it.

Sandeep Mhatre, Mumbai

22nd May 2015

Yes, but it prohibits landlords from imposing market rents. Now, all those who have taken such commercial establishments on rent and also those living as tenants in residential homes that are bigger than 862 sq-ft will not be protected under the Rent Control Act.

pradyumanapte, Mumbai

22nd May 2015

@Pradyuman,
It means people will now have to pay market rates that are demanded by his/her landlord or could be kicked out.

Sandeep Mhatre, Mumbai

22nd May 2015

No, not like that. To make sure that the amendment does not lead to a sudden increase in rents, the amendment has included a provision where in for the first 3 yrs. after the amendment has been introduced, the owner of the property can only impose 50% of the market rent.

pradyumanapte, Mumbai

22nd May 2015

Hi Ritesh, Is there any where mention that you have to pay an amount of money if you vacant the house before 11 months. If not then you can give a notice of one month and vacant the room.

Balwinder Singh,

13th December 2012

Comment

The basic reason for making it on 11 months basis by the property owner is to shy away from the law of giving 6 months notice.If he makes it for 1 year i.e 12 months, then he has to give notice of 6 months at the end of those 12 months but if he makes the agreement for 11 months then there is no compulsion of giving notice. So you can serve your notice before one month only if it is mentioned in the agreement

tony, Gurgaon

12th July 2012

Comment